Real estate sector: Property dealers oppose further taxation

LAHORE: Reacting to the hint dropped by the government that it may levy more taxes on the real estate sector on the instructions of the IMF, the property dealers of Lahore have made it clear that they are opposed to any such move.

Demanding relief from the government, Property Dealers’ Association Chief Coordinator Muhammad Saeed said on Sunday that already property dealers were paying five different kinds of taxes.

“And now they cannot bear any further taxes,” he said, adding that increased taxation had resulted in 75 per cent drop in the sale of plots in the city. “That is why Pakistanis today prefer to purchase properties in Dubai,” Saeed said, adding, “Due to 22 per cent interest rate, people deposit their amounts in banks and earn profits.”

He made it clear that unless the government reduced the interest rate and introduced incentives for the real estate sector, foreigners would not invest in Pakistan. “Dubai, which is surrounded by desert from all sides, thrives only because of its real estate sector,” Saeed said.